Taiwan flour millers to make $484.5 million purchase
Flour millers from Taiwan have signed a letter of intent to purchase roughly 62.5 million bushels of U.S. wheat in the next two years.
The Taiwan Flour Mills Association's purchase is worth an estimated $484.5 million, according to U.S. Wheat Associates.
The signing ceremony Sept. 10 in Washington D.C. kicked off Taiwan's formal Agricultural Trade Goodwill Mission to the United States to purchase grains and other agricultural products for the people of Taiwan. The mission also intended to sign letters of intent with the U.S. Grains Council and the American Soybean Association.
The association will tour Idaho, Montana, North Dakota and Oregon as part of the mission, meeting with state wheat commissions and government representatives.
U.S. Wheat Associates President Alan Tracy co-signed the letter of intent with Wei-Chang Chang, manager of Thai Ho Milling Company and executive director of the flour mills association.
Taiwan is the sixth largest market for U.S. wheat, purchasing 520 million bushels since 1998, worth an estimated $3.27 billion. Hard red spring wheat imports serve a need for strong gluten four for breads, rolls and frozen dough products, as well as blending with hard red winter flour to make traditional Chinese flour foods and noodles. Soft white wheat imports, including western white wheat, help meet growing demand for cake, cookie and pastry flours.